Formo: Scaling the Production of Climate-Friendly, Animal-Free Cheese
The phrase “vegan cheese” has often been associated with poor imitations of traditional dairy cheese. Many non-dairy cheese products on the market use plant proteins as a base but are filled with additives, resulting in unhealthy and unpleasant-tasting alternatives. However, German fermentation startup Formo is looking to change this narrative with its innovative approach to cheese production.
Formo’s unique selling point lies in its use of Koji protein, a type of fungal microorganism that has been used in Asian cuisine for centuries. While Koji is not a new ingredient, Formo claims to be the first fermentation startup capable of using it to produce industrial quantities of dairy-free cheese. By harnessing the power of Koji, Formo aims to create an animal-free cheese that rivals the taste and texture of traditional dairy cheese.
One of the challenges faced by vegan cheese is the high cost associated with using nut milk as a base. Formo’s use of Koji proteins presents a fresh twist in the vegan cheese market, offering a more affordable and sustainable alternative. Unlike plant-based proteins, Koji proteins can be grown through fermentation, making it possible to produce cheese at a large scale.
Formo’s co-founder, Roman Plewka, emphasizes the company’s dual strategy. Initially, Formo focused on micro fermentation, which does not require regulatory clearance as a novel foodstuff. By fermenting and harvesting Koji proteins, Formo can produce its first wave of cheeses without the need for regulatory approval. However, the company plans to venture into gene editing of microorganisms in the future to produce milk proteins without cows, enabling a wider range of animal-free cheeses.
Despite the slight premium in price compared to dairy equivalents, Formo aims to achieve price parity as it refines its technologies and scales production. The startup has invested five years in research and development to develop production platforms capable of producing various types of cheeses, including feta-style and blue cheeses. With its first products already on the market, Formo is confident that the quality of its cheeses justifies the premium, offering consumers a sustainable and cruelty-free alternative to traditional dairy cheese.
The environmental benefits of vegan cheese are significant. Animal husbandry is resource-intensive and contributes to global carbon emissions. Vegan cheeses, on the other hand, have a much lower environmental impact. Formo’s micro fermentation-based process for producing cream cheese generates 65% fewer emissions, uses 83% less land, and requires 96% less water than dairy-based cream cheese. Additionally, Formo’s approach avoids the use of additives commonly found in low-quality vegan cheese products, ensuring a healthier and more natural alternative.
Formo’s recent $61 million Series B funding round will enable the company to scale production from 100 tonnes to 1,000 tonnes of non-dairy-based fermented Koji protein and plant protein-based cheese per month. The startup plans to expand to other European markets and beyond, capitalizing on the growing interest in non-animal-based cheeses.
While Formo is focused on its Koji-based cheeses for now, the company aims to incorporate non-animal-based casein proteins in the future to produce meltable hard cheeses. This would allow them to further expand their product range and meet consumer demand for stretchable and gooey cheeses like mozzarella. By starting with the fungus-based fermented product, Formo can establish a consumer-facing brand, generate revenue, and build a reputation in the market while working towards its long-term vision.
Investors have shown great interest in Formo’s mission, with the Series B funding round attracting both existing and new investors. The support of retailers like REWE Group, Europe’s second-largest retailer, further validates Formo’s potential in the market. With the global cheese market valued at over $240 billion, Formo has the opportunity to carve out a significant share and become a major player in the industry.
Formo’s journey has only just begun, but the early reception of its products has been overwhelmingly positive. Plewka is confident that the company will reach net profitability soon, despite only recently launching its first products. As other precision fermentation startups also explore non-animal-based cheeses, the industry is poised for transformation. However, regulatory clearance as novel foods may delay regional launches, making Formo’s early market entry a strategic advantage.
In conclusion, Formo’s innovative use of Koji proteins has the potential to revolutionize the vegan cheese market. By offering a sustainable and delicious alternative to traditional dairy cheese, Formo is well-positioned to make a significant impact. With its focus on quality, scalability, and environmental benefits, Formo is set to become a leading player in the growing market for climate-friendly, animal-free cheese.